The carrier had been seeking to overturn a decision made in 2014, which ordered it to pay the sum as compensation for offering “dishonest assistance of various breaches of fiduciary duty” to the former boss of Goldtrail, Abdulkadir Aydin.

The tour operator collapsed in 2010, leaving thousands of holidaymakers stranded abroad. It cost the Air Travel Trust £23.9 million.

In order to proceed with the appeal Onur Air had been ordered to pay the £3.64 million. However, despite an extension, the company was unable to come up with the cash. Instead it argued, the appeal should be stayed until the outcome of a separate appeal involving the Black Pearl defendants, which include former XL Leisure Group boss Phil Wyatt

Evidence submitted by Onur’s chief financial officer Cigdem Erguven suggested that the company had been unable to secure finance from banks and was therefore unable to pay the judgement debt.

The judge argued that controlling shareholder and chairman Hamit Cankut Bagana had “decided not to fund the payment by the company".

Lord Justice Patten concluded: “It seems to me that once Mr Bagana’s position is taken into account with the consequences I have explained the court has no proper alternative but to dismiss the appeal. “

He added: “The interests of justice dictates that, in these circumstances, the court should protect its own process and give effect to its previous orders by dismissing the appeal and removing the stay on the judge’s order. I will therefore make an order in those terms.”

The appeal by the Black Pearl defendants is scheduled for later this year. Wyatt, Magnus Stephensen, Halldor Sigurdarson, together with the entity Black Pearl Investment Ltd, were ordered to pay £1.4 million.